BT extends range for faster growth

BT extends range for faster growth BT Industries AB have entered an agreement to acquire 45% of the Italian truck manufacturer CESAB who, under the BT brand, will produce primarily electric counterbalance trucks. The agreement will enable BT to develop new customer relationships and improve service to existing customers. The partnership in CESAB CARRELLI ELEVATORI S.p.A. is yet another step in BT Industries´ growth strategy. It will enable BT to develop customer relationships in new sectors, and improve service to existing customers by offering a complete range of counterbalance and warehouse trucks in Europe. "It is a welcome addition to our range", comments Carl-Erik Ridderstråle, President and CEO of BT Industries AB. "The market is developing towards full- range suppliers and the ability to offer counterbalance trucks in all our European markets is important to our continued growth". Substantial market The new BT branded range comprises primarily electric counterbalance (CB) trucks with capacities ranging from 0.8 to 8 tons. The European market for electric counterbalance trucks is estimated at SEK 15 billion annually, including after-sales operations. Next to warehouse trucks, electric counterbalance trucks represent the fastest growing truck segment in the market. The new CB range will be introduced into BT's current distribution network starting in a number of countries during the second quarter of 1999. "CESAB has state-of-the art products, BT has the distribution. Together, we have the tools for fast growth. CESAB´s manufacturing volumes are likely to increase substantially over the next years", says Carl-Erik Ridderstråle. Co-operation since 1994 BT will pay SEK 55 million for the 45% share in CESAB, which in 1998 had sales of SEK 550 million and 300 employees. The company is situated in Bologna, 1 Italy, and manufactures and distributes electric and IC counterbalance trucks in capacities ranging from 0.8 to 8 tons. CESAB is owned by the Maccaferri Group, a private, Italian, industrial group with 3400 employees and annual sales of SEK 7 billion. BT and CESAB have worked closely together since 1994 when a joint venture was established in Italy for distributing trucks under the BT and CESAB brands. "Our positive and successful co-operation over many years makes a natural foundation for a closer partnership", says Carl-Erik Ridderstråle. "We welcome BT" CESAB, founded in 1942, is the longest-standing Italian manufacturer of counterbalance trucks with outstanding know-how in design and ergonomics. Several similarities exist between warehouse trucks and electric counterbalance trucks in terms of application areas, service and technology. By co-operating in areas such as purchasing and product development, the companies expect to reduce manufacturing costs at CESAB by a figure in excess of SEK 25 million within a couple of years. "We welcome BT Industries as a partner in CESAB, says Alessandro Maccaferri, Chairman of the Board at CESAB. "CESAB will remain majority owned by the Maccaferri Group. The company will gain access to BT's international sales and service network, which will further strengthen CESAB´s competitiveness through higher production volumes and improved economies of scale". CEO Carl-Erik Ridderstråle and CFO Per Zaunders will be pleased to answer questions via telephone +46-142-860 00. For general questions, please contact PR Manager Göran Skoglund at +46-142-864 09 or +46-70-555 92 88. This press release is also available on BT Industries' WEB-site at www.bt-industries.com. 1 Internal Combustion ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/03/05/19990305BIT00020/bit0001.doc http://www.bit.se/bitonline/1999/03/05/19990305BIT00020/bit0002.pdf